504 Program

Benefits to the Borrower
  • Up to 90% financing on fixed assets.

  • Below market, long-term, fixed rate funds.

  • Twenty-year loan avoids balloon payments and renegotiation of the loan with possible higher payments.

  • Lower down payment conserves working capital.

Benefits to the Bank
  • First mortgage position with low loan-to-value reduces collateral risk.

  • SBCC staff prepares all SBA forms, completes the packaging and documentation, closes and services the loan.

  • Builds a stronger banking relationship by providing the customer the benefits of a 504 loan, while maintaining the banking relationship.

  • The bank's loan at 50% of project cost allows banks with in-house lending limits to preserve available funds for the borrower's future working capital/growth needs.

  • Helps with CRA credit requirements.

How It Works

A typical 504 loan involves a loan secured by a first mortgage from a commercial bank or other lending source covering 50% of the project. SBCC provides up to 40% of the funds with a second mortgage. The borrower must provide at least 10% of the financing for the 504 project.


  • $5 M for regular 504 loans

  • $5.5 M for eligible manufacturing loans (31,32,33 NAICS codes) and renewable energy source projects